Earning a college degree often comes with a big price tag: Americans are estimated to owe more than $1.5 trillion in student loan debt collectively. While these loans make education possible, high interest rates often prevent borrowers from paying off debts in a reasonable time-frame and enjoying greater financial freedom. Fortunately, if you’re burdened by student loan repayments, you can lower your interest rates and monthly payments by following these debt relief strategies.

3 Ways to Reduce Your Student Loan Interest Rates

1. Take Advantage of Lender Incentives

Many lenders offer programs to reward borrowers for making repayments responsibly. For example, enrolling in automatic payments may lower your student loan interest rate by a fraction of a percent. Others may offer incentives to those who have made payments on time for an extended period, such as three to four years.

2. Apply for Rate Reduction

Lenders often offer rate reduction to assist those in repayment. These programs essentially allow you to maintain the same loan, but with a lower interest rate. The amount of reduction can depend on several factors, such as your repayment history and financial situation. While rate reduction can offer some debt relief, these programs do not always last indefinitely. If applying for a reduction, check the length of the agreement.

3. Refinance Through a Private Lender

Refinancing involves selling your existing debt to another lender, who offers you a better interest rate. This option is convenient for consolidating several loans and simplifying repayment requirements. If you want to get the best terms when refinancing, having a higher credit score can help show that you’re a responsible borrower, which in turn may reduce your rate. Demonstrating stable income and having a dependable co-signer can also improve your approval chances.

When lowering your student loan interest rates is an obstacle, Greg Dunn, Bankruptcy and Debt Relief Attorney in Honolulu, HI, is here to help. Specializing in financial law since 1996, this Oahu debt attorney has an in-depth understanding of negotiating for lower interest rates and restructuring payments with lenders. If student loans are just a part of your financial burden, he can also assist you in filing for Chapter 7 or Chapter 13 bankruptcy. Learn more about these services online. To discuss the details of your case in a free initial consultation, call the office at (808) 524-4529.